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Generally capital employed,is presented as deducting the current liabilities from the current assets.it can be deferred as equity plus loans which are subject to interest.to define it properly it can be expressed as the total amount of capital that has been utilized for acquisition of profits.
Capital employed is also known as funds employed, is the total amount of capital used for acquisition of profits. It is the value of all the assets employed in the business and can be calculated by adding fixed assets to working capital.
Total capital harnessed in a firm fixed and current assets viewed from the funding side it equals stockholders funds plus long term liabilities ,viewed from asset side it equals fixed assets plus worked assets
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